The Total Credit Gap Mirrors the Scarcity of Women Entrepreneurs

One reason for the lower number of women micro, small, and medium enterprise (MSME) owners compared to men is the persistent gender bias in business. Women face greater difficulty accessing business networks, opportunities, and financial support than men.

This disparity is measurable in the credit gap, the difference between the loans applied for and the loans obtained by women entrepreneurs. Data from the International Finance Corporation (IFC) report in 2011 shows that globally, the estimated credit gap for women entrepreneurs was US$287 million, or 30 percent of the total MSME credit gap. This relatively small percentage is due to the small number of women MSME owners.

Indonesia, located in the East Asia and Pacific region, has a total credit gap of US$67.5 million for women MSME owners. Compared to other regions, this figure is quite substantial. This indicates that women-run MSMEs are relatively active in this region, although the percentage difference between the total credit gap for women and men in East Asia and the Pacific is also significant.

Women need continued support to develop their businesses by gaining better access to finance. This is especially true in regions with very low total credit gaps, such as South Asia.